HDTV to x264 In Gknot Problem

[spamalam]

Hi, i was wondering if anyone could shed some light on this little problem. I'm trying to re-encode a 1080i mpeg2 stream down to 720p x264 @ about 1dvdr size. However, I'm having some problems. I used gknot as I usually do and got this avs:

# Created with Gordian Knot
#
# http://gknot.doom9.org

# PLUGINS
LoadPlugin("D:\Programs\Video\Encoding\GordianKnot\DGMPGDec\DGDecode.dll")
LoadPlugin("D:\Programs\Video\Encoding\GordianKnot\AviSynthPlugins\UnDot.dll")

# SOURCE
mpeg2source("C:\Hot Swap\Hot Swap 1\ghostbusters\ghostbusters.d2v")

# CROPPING
crop(2,144,1916,792)

# RESIZING
LanczosResize(1280,560)

# DENOISING: choose one combination (or none)
Undot()


I go through all the settings, however when it gets to the actual encoding i get this:
http://img179.imageshack.us/img179/2608/compressproblemxo5.jpg (http://imageshack.us)

and i haven't the scoobiest why. I've never used X264 before but it seems to be installed correctly and everything, and i left all its settings at default. I tried using different resize filters and resolutions but still doesn't like it.

Thanks in advance :)

[Sharktooth]

OT: AH! Ghostbusters!!! My favourite movie!!!

[check]

You should probably stop using GK for outputting x264. x264 through VfW (the only way GK can work) is rather nasty, and you can get all sorts of programs.
Have you considered a program that can natively create h264 streams, such as MeGUI?

[spamalam]

You should probably stop using GK for outputting x264. x264 through VfW (the only way GK can work) is rather nasty, and you can get all sorts of programs.
Have you considered a program that can natively create h264 streams, such as MeGUI?
In all honesty, i've used Gknot for so long that no, the thought hadn't crossed my mind. I guess i'll try that program.

Thanks.

ps. yes, Ghostbusters is hella-cool, i got a few other of my favourite movies to give the same 1080i -> 720p treatment too :)